Monthly Pensions Indexed Up By 10%

Dr. John Ofori Tenkorang, SSNIT boss

THE SOCIAL Security and National Insurance Trust (SSNIT), in consultation with the National Pensions Regulatory Authority (NPRA) and in accordance with Section 80 of the National Pensions Act 2008 (Act 766), has indexed monthly pensions upwards by 10% for the year 2021.

A release issued by the Trust said “All pensioners on the SSNIT Pension Payroll as at December 31, 2020 will have their monthly pension increased by a fixed rate of 9.34% representing the annual average price inflation, plus a redistributed flat amount of GH¢6.47.”

It noted that pensioners receiving the minimum pension of GH¢300 as at December 31, 2020 will have their monthly pensions increased to GH¢334.49, representing an effective increase of 11.5%. Redistribution is a mechanism applied to the indexation rate to cushion members on low pensions in line with the solidarity principle of social security.

Low pensions arise as a result of low basic salaries on which contributions were paid. The minimum pension for all new pensioners effective January 2021 will be GH¢300.

This means, pensioners whose computed monthly pensions fall below GH¢300.00 will be placed on this minimum.

The SSNIT is a statutory public trust with the mandate of administering the First Tier Basic National Social Security Pension Scheme under the National Pensions Act 2008 (Act 766).

SSNIT is charged with the responsibility of replacing part of lost income to its contributors and their dependants due to old age, invalidity, emigration or death. The pension a member enjoys under the First Tier Scheme is dependent on the Basic Salary (on which contributions were made) and the number of months one has contributed to the scheme.

“Pensioners will be paid on the third Thursday of each month,” it emphasised.

A business desk report